Court to rule on Shaik’s assets

2007-11-24 00:00

Shaik meanwhile is reported to have suffered a stroke and is recovering in Albert Luthuli Hospital in Durban. It is not clear how long Shaik will remain there.

Some R40 million of Shaik’s assets have been frozen by the state, as a result of a finding made by Durban Judge Hillary Squires that they were benefits derived from Shaik’s corrupt relationship with former deputy president Jacob Zuma and therefore liable to be confiscated. Shaik, on the other hand, maintains the shares were acquired legally.

Shaik and his Nkobi Group of companies have appealed Squire’s ruling.

The appeal is due to be heard in February next year and the papers before the Constitutional Court reveal that Shaik will argue that the confiscations are unlawful, disproportionate, not the proceeds of crime and should be set aside.

Now Shaik and his companies have lodged an urgent application for the Durban High Court to order the release of money to fund the pending appeal.

Papers reveal that Shaik’s counsel, KZN advocate, Hoosen Gani is set to argue when the case comes to court on Wednesday that the state has seized more assets than it was entitled to and is liable to pay Shaik back more than R8 million in interest alone.

The papers allege that although Shaik and his companies have assets amounting to hundreds of millions of rands, these assets are tied up in his extensive business operations. The state is expected to oppose the application.

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